Mortgage

Mortgage and refinance charges at this time, October 21, 2020

Today's mortgage and refinance rates

Average mortgage rates rose significantly yesterday. But only by the smallest measurable amount. And traditional loans today start at 3.125% (3.125% APR) for a 30 year fixed rate mortgage.

Markets still seem confident that a pre-election deal on a stimulus package could be struck. But not all the necessary parties are on board.

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Current mortgage and refinancing rates

program
Mortgage rates
APR *
change
Conventional 30 years fixed
3.125%.
3.125%.
Unchanged
Conventional 15 years fixed
3%.
3%.
Unchanged
Conventional 5-year ARM
3%.
2,743%.
Unchanged
Fixed FTA for 30 years
2.25%.
3.226%.
Unchanged
Fixed FTA for 15 years
2.25%.
3.191%.
Unchanged
5 years ARM FHA
2.5%.
3,239%.
Unchanged
30 years permanent VA
3.063%.
3,242%.
+ 0.13%
15 years fixed VA
2.25%.
2.571%.
Unchanged
5 years ARM VA
2.5%.
2,419%.
Unchanged

Your rate could be different. Click here for a personalized price offer. See our tariff assumptions here.

Find and Lock a Low Rate (Oct 21, 2020)

COVID-19 Mortgage Updates: Mortgage lenders are changing interest rates and rules due to COVID-19. For the latest information on the impact of Coronavirus on your home loan, click here.

Should You Lock A Mortgage Rate Today?

Government bond yields (whose mortgage rates are often in the shadows) hit a four-month high overnight. Why? Because investors remain optimistic about reaching an agreement on a stimulus package for the pre-selection.

The White House and Speaker of the House, Nancy Pelosi, certainly agree. The New York Times reported this morning:

Senator Mitch McConnell, the majority leader, privately told Republican senators Tuesday that he had warned the White House not to enter into a pre-election agreement with Spokeswoman Nancy Pelosi on a new round of incentives to prevent an agreement that President Trump called for most in his party are against it.

However, Mr McConnell also said at a press conference: "If a presidential-backed bill eventually clears the House, we will bring it to the floor."

So how likely is it that a 13-day agreement will vote? If someone is hit, mortgage rates could continue to rise. But if the talks fall apart, those rates can definitely drop noticeably.

I'm not optimistic, although that's just a gut feeling. So my personal recommendations remain unchanged:

LOCK when you approach 7th DaysLOCK when you approach fifteen DaysHOVER when you approach 30th DaysHOVER when you approach 45 DaysHOVER when you approach 60 Days

But with so much uncertainty right now, your instincts could easily turn out to be as good as mine – or better. So let your gut and your personal risk tolerance guide you.

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Market Data Affecting Mortgage Rates Today

Here is the current status at 9:50 a.m. (ET) this morning. The dates, compared to roughly the same time yesterday morning, were:

The 10-year Treasury yield rose from 0.79% to 0.81%. (Bad for mortgage rates.More than any other market, mortgage rates usually tend to follow these particular government bond yields, albeit more recentlyImportant stock indices were mostly dampened when opening. (Neutral for mortgage Prices.Often times, when investors buy stocks, they sell bonds, which lowers the prices of those bonds and increases yields and mortgage rates. The opposite happens when the indices are lower. Oil prices rose from $ 40.46 a barrel to $ 40.96. (Bad for mortgage rates * because energy prices play a huge role in creating inflation and also indicate future economic activity.) Gold prices rose from $ 1,904 per ounce to $ 1,928. (Well for mortgage rates *.) In general, it is better for interest rates when gold rises and worse when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to cut rates. CNN Business Fear & Greed Index increased from 63 out of a possible 100 points to 67. (Bad for mortgage rates.) "Greedy" investors push bond prices down (and interest rates up) when they exit the bond market and invest in stocks, while "fearful" investors do the opposite. Lower readings are therefore better than higher ones

* A change in the price of gold by less than $ 20 or in cents in oil prices is a fraction of 1%. Hence, we count significant differences in mortgage rates only as good or bad.

Before the pandemic and the Federal Reserve's intervention in the mortgage market, you could look at the numbers above and get a pretty good idea of ​​what would happen to mortgage rates that day. However, this is no longer the case. The Fed is a big player now and a few days can overwhelm investor sentiment.

Use markets only as a rough guide. They have to be exceptionally strong (rates are likely to rise) or weak (they could fall) to be relied on. Today they are looking again unsure for mortgage rates.

Find and Lock a Low Rate (Oct 21, 2020)

Important Notes About Today's Mortgage Rates

Here are some things you need to know:

The continued intervention of the Fed in the mortgage market (well over $ 1 trillion) should continue to put pressure on these rates. But it can't always work miracles. So expect both short-term increases and decreases. And read: “For once, the Fed affects mortgage rates. Here's why: "If you want to understand this aspect of what is happening, mortgage rates usually go up when the economy is doing well and go down when they're in trouble." There are exceptions, however. Read about how mortgage rates are determined and why you should care. Only top notch borrowers (with great credit scores, high down payments, and very healthy finances) will get the ultra-low mortgage rates for which the listed lenders vary. Yours may or may not follow the crowd when it comes to interest rate movements – though they usually all follow the broader trend over time. When interest rate changes are small, some lenders adjust closing costs and leave their interest rate cards the same. Refinancing rates are usually close to those for purchases. However, some types of Fannie Mae and Freddie Mac refinancing are currently significantly higher after a change in regulations

So there is a lot going on here. And no one can claim to know for sure what will happen to mortgage rates in the coming hours, days, weeks, or months.

Are mortgage and refinancing rates rising or falling?

The general trend in mortgage rates has been falling significantly in recent months. A new all-time low was set in early August, and we have grown close since then. In fact, on October 15, Freddie Mac said it had hit a new low this week.

However, there is currently very little certainty. So don't accept anything.

It all depends on myriad variables, most of which are unknown.

Mortgage Forecast Experts

Looking ahead, Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) each have a team of economists devoted to monitoring and forecasting the impact on the economy, housing and mortgage rates.

And here are their current interest rate forecasts for the final quarter of 2020 (Q4 / 20) and the first three of 2021 (Q1 / 21, Q2 / 21 and Q3 / 21).

Notice that fannies (published October 19) and the MBA (21st September) are updated monthly. However, Freddies are now released quarterly. The latest was released on October 14th.

The numbers in the table below are for 30-year fixed rate mortgages:

ForecasterQ4 / 20Q1 / 21Q2 / 21Q3 / 21Fannie Mae 2.9% 2.8% 2.8% 2.8% Freddie Mac 3.0% 3.0% 3.0% 3.0% MBA 3.1% 3.1% 3.2% 3.2%

So the predictions vary considerably. You pay your money …

Find your lowest price today

You can literally save thousands by comparing your mortgage or refinancing through multiple lenders. So don't cut your throat by simply taking one, no matter how well you know or how strongly it is recommended.

You need to find the best possible deal. And that can change from lender to lender and from day to day.

That advice is particularly important now. Some mortgage lenders have withdrawn certain products or changed their offerings in response to the pandemic. And you may have to shop around to find a good deal on a withdrawal refinance, investment property loan, jumbo loan, or bad credit rating.

So be ready to kiss lots of frogs to find your lender prince or princess.

Check your new plan (October 21, 2020)

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Mortgage rate method

The mortgage reports receive interest rates based on selected criteria from multiple credit partners on a daily basis. We find an average rate and an annual interest rate for each type of loan that we want to show on our chart. Since we calculate a series of average prices, this will give you a better idea of ​​what you might find in the market. We also calculate average interest rates for the same types of loans. For example, FHA was fixed with FHA. The end result is a good snapshot of the daily rates and how they change over time.

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